So I touted the merits of loaning money through Kiva in this post, and Nads and I have funded one round of loans. If you don’t know about Kiva – shame on you! They are an organzation who facilitates loans to 3rd world entrepreneurs at zero percent interest rates. Their repayment rate has been phenomenal – something like 97% which just goes to show that many of the world’s poorest are looking for a hand-up, not a hand-out. Repayment plans take from 6-12 months usually, and when all the funds have been repaid, the original lender can re-lend (hopefully) or remove his money. You lose a little rate of return, but the difference in the lives of these struggling entrepreneurs is life-changing. Nads and I have already started to see our loans repaid. Here are the 4 entrepreneurs we lent to:
1. Nasreen Akhter’s Group. A loosely formed group of people from the same village in Pakistan who are looking to expand various businesses. The lead woman – Nasreen, believes strongly in the value of education, and all 4 of her daughters go to school. Only one of her school-aged children, her son, does not attend school, because his help in the family business is indespensible It’s great – on February 29, they posted a request for $1,300 for various ventures. On March 1, their request was fully funded, and by March 15 – about 6 weeks later – they had their money. They have paid back 17% of their loan.
2. Marlon Javier Arestogui. A Nicaraguan rickshaw-wallah who needed $175 to improve his rickshaw. He wanted to make some repairs, and “add a touch of elegance” for his riders. He requested the funds on March 1, was funded the same day, and by March 15, he had his money. He has already paid back 21% of the loan.
3. Getina Mwaibare. A Tanzanian woman who is raising 6 children (4 of her own, and 2 nieces) needed $875 to purchase utensils and ingredients in bulk for her barbeque chicken business. She originally borrowed a sum through Kiva for the initial seed money for the business – she paid that off, and now she is looking to improve. She listed a request for the money on March 1, and by March 15, she had the cash. !0 weeks later, she has paid back 17% of the loan.
4. Kwegata Wakimese Group. A group of 5 female entrepreneurs in Uganda who use the money for various home-based industries. They were seeking $1,825 on February 29, and they too had their money by March 16. 10 weeks later, they have repaid 17% of their loans.
I am sure Nads and I will leave our money and re-lend, especially if we experience the same repayment success that Kiva has experienced across all entrepreneurs. So for all of you thinking – “we want to do something good for someone, but we are a little lazy and unmotivated.” Just click here!